Worldwide Server Shipments Declined 4.2 % in the 1st Quarter of 2017; Revenue Declined 4.5 Percent


In the first quarter of 2017, worldwide server revenue declined 4.5 percent year over year, while shipments fell 4.2 percent from the first quarter of 2016, according to Gartner, Inc.

"The first quarter of 2017 showed declines on a global level with a slight variation in results by region," said Jeffrey Hewitt, research vice president at Gartner. "Asia/Pacific bucked the trend and posted growth while all other regions fell.

"Although purchases in the hyperscale data center segment have been increasing, the enterprise and SMB segments remain constrained as end users in these segments accommodate their increased application requirements through virtualization and consider cloud alternatives," Mr. Hewitt said.

Hewlett Packard Enterprise (HPE) continued to lead in the worldwide server market based on revenue. The company posted just more than $3 billion in revenue for a total share of 24.1 percent for the first quarter of 2017 (see Table 1). Dell EMC maintained the No. 2 position with 19 percent market share. Dell EMC was the only vendor in the top five to experience growth in the first quarter of 2017.

Table 1
Worldwide: Server Vendor Revenue Estimates, 1Q17 (U.S. Dollars)

Company
1Q17
Revenue
1Q17 Market Share (%)
1Q16
Revenue
1Q16 Market Share (%)
1Q17-1Q6 Growth (%)
HPE
3,009,569,241
24.1
3,296,591,967
25.2
-8.7
Dell EMC
2,373,171,860
19.0
2,265,272,258
17.3
4.8
IBM
831,622,879
6.6
1,270,901,371
9.7
-34.6
Cisco
825,610,000
6.6
850,230,000
6.5
-2.9
Lenovo
731,647,279
5.8
871,335,542
6.7
-16.0
Others
4,737,196,847
37.9
4,537,261,457
34.7
4.4
Total
12,508,818,106
100.0
13,091,592,596
100.0
-4.5
Source: Gartner (June 2017)

In server shipments, Dell EMC secured the No. 1 position in the first quarter of 2017 with 17.9 percent market share (see Table 2). The company had a slight increase of 0.5 percent growth over the first quarter of 2016. Despite a decline of 16.7 percent, HPE secured the second spot with 16.8 percent of the market. Inspur Electronics experienced the highest growth in shipments with 27.3 percent.

Table 2
Worldwide: Server Vendor Shipments Estimates, 1Q17 (Units)

Company
1Q17
Shipments
1Q17 Market Share (%)
1Q16
Shipments
1Q16 Market Share (%)
1Q17-1Q16 Growth (%)
Dell EMC
466,800
17.9
464,292
17.1
0.5
HPE
438,169
16.8
526,115
19.4
-16.7
Huawei
156,559
6.0
130,755
4.8
19.7
Lenovo
145,977
5.6
199,189
7.3
-26.7
Inspur Electronics
139,203
5.4
109,390
4.0
27.3
Others
1,254,892
48.2
1,286,097
47.4
-2.4
Total
2,601,600
100.0
2,715, 138
100.0
-4.2
Source: Gartner (June 2017)


Additional information is available to subscribers of the Gartner Servers Quarterly Statistics Worldwide program. This program provides worldwide market size and share data by vendor revenue and unit shipments. Segments include: region, vendor, vendor brand, subbrand, CPU type, CPU group, max CPU, platform, price band, operating systems and distribution channels.